Oligarchs and Russian professionals fearful of spiralling political and
economic unrest are buying houses in the capital

Property agents have seen a surge of investment into London from wealthy Russians as the Crimean conflict escalates, according to leading real estate experts.

Oligarchs and Russian professionals, such as bankers, lawyers and doctors, are withdrawing their money from the region, fearful of spiralling political and economic unrest, and sinking it into the prime central London housing market.

President Vladimir Putin, signed a new law this week formalising Russia’s take-over of Crimea from the Ukraine and triggering a fresh round of sanctions from the US and the EU.

Property advisers Jones Lang La Salle (JLLS) said such restrictions are unlikely to stem the burgeoning flow of investment.

“During periods of uncertainty in Russia, capital flows run out faster than normal. Economic growth has started to slow with GDP forecast downwards and a weakening rouble,” said Tom Mundy, head of research, Russia, at JLLS.

“The Russian-Crimea dynamic has accentuated deepening economic issues, and the Russians, who are financially cautious, are getting their money out quickly and pumping it into reserve currency assets outside Eastern Europe.”

International investors from the Middle East, Africa and Eastern Europe dominate the new-build market in prime central London.

JLLS estimated that Russian money accounts for 7pc of all property, both old and new, worth more than £1m in the capital’s core. It estimated this prime market was worth £8bn in 2012.

“Due to current uncertainty, Russian money is making its way into the bricks-and-mortar assets of London – seen as a safe haven,” said Mr Mundy. “It’s only a four-hour flight from Moscow, schools and shopping are good.”

The deepening Crimean crisis is driving a new class of Russian investor.

Capital flows from Russia into London are no longer dependent upon oligarchs buying £10m to £25m Chelsea townhouses or Hampstead mansions. Russian professionals are snapping up £1m to £2m apartments across central London.

“London is seen as liquid,” said Mr Mundy. “It’s easy to buy, easy to sell and it has a depth of stock not available in Moscow. Pricing is not dissimilar and the pound is relatively strong compared to the rouble.”

“It is difficult to see sanctions dissuading the Russians from investing in London.”